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Mark Cuban is a billionaire with a lot of ideas in his head. While he has, for the most part, had a very up-and-down relationship with bitcoin and its altcoin cousins, he recently admitted to being invested in the world’s largest digital currency by market cap. He also claimed to be a fan of ETH given its capabilities with smart contracts.
Mark Cuban: I Look at “Blockchains as Networks”
In a recent interview, Cuban discussed what it was that brought him onto the cryptocurrency train. He says that while it is important to look at the costs and speeds of various cryptocurrencies before getting invested, there are other elements to watch out for as well, such as how strong a currency’s network is. This is ultimately what got him involved in ETH. Cuban claims:
Most people look at speed and costs compared to BTC [bitcoin] or ETH [Ethereum]. While those things can be important, I look at blockchains as networks with development platforms via smart contracts.
One of the big things that attracted Cuban to Ethereum is the fact that it has brought life to the world of decentralized finance. The ETH blockchain’s abilities with smart contracts has given a way for developers to establish new digital coins and decentralized applications, otherwise known as dapps. It is also a highly popular platform for those looking to establish NFTs or non-fungible tokens.
This, he says, has given rise to a whole new side of the cryptocurrency space that the world may have never been privy to. Thus, Ethereum is not just solid as a currency, but also because it has led to further crypto development and turned the world of digital assets into a competitive financial space that has put fiat and credit cards on edge.
The platforms that have the most active developers and create applications with significant utility for their users will have a network effect… Depending on how fees are distributed, [it can] create a real revenue stream that increases the values of the tokens they mint.
A Lot of People Like Ethereum
He is not the only person who feels this way. Kathy Lien of BK Asset Management explained in a statement:
Ethereum [is] looking for ways to become a fully working infrastructure platform. Ethereum itself can perform a number of economic tasks, so it goes beyond.
While Cuban has never thought that bitcoin would ever work as a currency, he does believe that the asset could potentially work as a store of value similar with gold. Thus, he has purchased bitcoin in the past and refuses to sell it for that reason. In addition, as the owner of the Dallas Mavericks basketball team, he was among the first sports execs to permit bitcoin and cryptocurrency payments for tickets and merchandise related to the team and its respective games and events.